A wallet is very important to keep your cryptocurrencies safe and secure and if you choosing you wallet randomly, you are doing it all wrong. Here are some of the tips which will help you in choosing the right wallet.
How to select a wallet for your cryptocurrencies?
The features which should be seen while choosing a Bitcoin wallet are:
- Compatibility: You should see if the wallet is compatible with different kinds of operating systems.
- Control of private keys: You should always choose a wallet where the user has complete control over the private keys of your currencies.
- Simple to use: The wallet should be easy to use and fast. It should also be lightweight and should not require to download the entire blockchain.
- Backup: The backup seed eyes and pin codes should be very strong for any wallet.
- Type of wallet: The wallet should be a hot or cold wallet. You should choose accordingly.
- HD wallet: Wallets which generates new addresses itself should be used.
- KYC: A wallet not requiring KYC is preferred.
Purpose of the wallet
While selecting the wallet for your Bitcoins, one should be aware of the purpose it has to be used. Some of the purposes which people generally use their wallets for are:
- Daily transactions
For daily transactions, you can use mobile wallets or web wallets but the user does not control the private keys in these wallets which makes it risky to store your coins in these wallets for more than 2-3 days.
- Long-term savings
If you want to save your Bitcoins for a long-term saving purpose, then you need to store your cryptocurrencies in cold storage which never come in contact with the internet and your Bitcoins are secure. Also, these wallets are HD wallets and do not use the same public address which makes them free from hacks.
- Short term HODL and trading of cryptocurrencies
If a user wants to HODL their tokens or coins for a short period of time then desktop wallets are the cheapest and safest wallets to use. These type of wallets can go online and are known as hot wallets.